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tv   Mad Money  CNBC  August 4, 2009 11:00pm-12:00am EDT

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these gains are just too big for the professionals to ignore, too big for the investors to ignore, and that's what's the good thing in this market. every time there's even a momentary decline like we had this morning, the big money men, the hedge funds, mutual funds, pension funds, you know what? they're now staring at double-digit gains for the most popular benchmark, the s&p 500. it's up 11%. the big money? it's out of excuses to avoid this market. you see, as long as the s&p was only up single digits, it was possible for these much flaunted money managers to brush off the need to be invested. the smartest ones, the most rigorous ones, they didn't have to touch -- you see, they could ignore the monster run in the nasdaq. some aberration! only a couple tech stocks caught up insanely because of that thing cramer talks about, the mobile internet tsunami. not anymore.
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they've got to come in. the pros have got to come in from the sidelines. they've got to cover the shorts. they've got to do some buy, buy, buy. they've got to put money to work even at the most fleeting of declines, like the one we saw at opening, a sell-off that normally would have opened up the flood gates of selling, but now it begets furious buying right into the close. every momentary sell-off this day, buy, buy, buy, every little one, you could see it! every time it looked like it was going to drop! why is this a card? how come nothing seems to be able to take this market down for the count? how come nothing lets this market stay on the canvas? it's baffling. baffling until you recognize that it's all about the business, the business of money management, not of stocks. and as a former professional hedge fund manager, i'm just the guy to explain how this game works. see, when the market's not rallying big, when it's only up a teeny-weeny single digit, it's
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very easy to explain away being on the sidelines, very easy to explain away the game, especially if you're not up very much. in fact, you can tell your investors that the game's basically a rounding error that nobody really cares about, it isn't worth the pain considering the risk that we have. basically, when the market's not up double digits, you have an excuse to sit on your hands to sit on the sidelines, but the moment that big benchmark pops, pops into the teens, well, then it becomes the elephant in the room. think about it. even the most brain-dead investors know it. they can't ignore it. they come down on their money managers top-nail boots and are saying if you can't figure it out, send me back some money. you can't make excuses anymore. you can't keep up with this market. you're no good. that's right, double digits mean there is's no choice for these pros. yep, even though they may know better, professional money managers after the increase to 11% and the fact that we didn't
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go down today, you could tell. see, they have no choice but to chase. you're already hearing a refrain that you're going to keep hearing as long as we're in this situation, it's wrong. it goes like this, oh, retail investors have been calling their brokers to get in now that we've passed the various s&p 500 nasdaq benchmarks 1,000, 2,000 respectively. that's nonsensical. home gamers, retail investors have been tip-toeing back in, but you're not the marginal buyer. you haven't been flooding the joint the way the press makes it out to be happening. mr. and mrs. joe are idiots, we'll sell them. it's the pros who are doing the flooding. what's happening is that if you're a money manager, you can no longer catch up to a plus 11% market by being predominantly in cash, and you're never going to catch up if you have a lot of shorts betting against stocks. these money managers, the big boys, are now playing with a ball and chain. they literally must buy stocks at every opportunity when they're down. if they don't, these come-from-behind guys will never close the gap that their
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investors know exists between their performance and the flashing up 11% benchmark. i know this because i used to run a hedge fund myself. this is simply how the business of money management works for funds. sure, some managers have the luxury of going into cash right now. when i was at my hedge fund and i had gains that were double the size of the markets when i went into the summer, come august, come on, man, hit the beaches! i'd shut down the firm. hey, one year is up so much, i just disappeared to martha's vineyard for the summer. i had a house right next to belushi's grave, really cool. but the summers where i was behind, particularly when the market was up double digits, you know what i had to do then. when the market was up double digits and i was negative? >> all aboard! >> all aboard. i had to come in. i had to -- >> buy, buy, buy! >> as i knew i would not be able to catch up without buying stocks. i couldn't catch up by just being in cash. and what would i buy? pretty simple, anything that sold off every few minutes, any stock that pulled back enough on
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a given day that allowed me to come in at a price that wasn't a total outrage. all day. this morning, the futures, which controlled the price of the opening, knocked down a bunch of red-hot stocks. hey, tech titan apple, machinery producer joy global, credit card monster mastercard, fertilizer dominator potash, casino company wynn. could i recommend that any more times? these have all been recommended over and over on this show because of the superior execution in hard times that are about to get better. those stocks opened in the red. and what'd you do? the buyers used this incredibly small weakness to pounce. that's hedge funds panicking to get in. you can see it with the banks, too. they're up huge from the march lows, we know that, but not if you're looking at where they came from. these are big, gloriously liquid stocks, natural places to go for performance. so, the money managers will buy bank of america and wells fargo and u.s. bancorp endlessly on any dip over and over again. that's why i bought them for my
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charitable trust. i knew they had to come in. they could take all they wanted and they're doing it. oil and natural gas, down last week. what a chance to get in. even though the earnings were widely lambasted. you see, they had no choice. the big-shot money managers simply cannot catch a double-digit move from the sidelines. they can no longer hope that the market will come down because it's up too darn much. and most of them don't have the luxury of being up so much that they can leave the table. they're being forced back to the table where they have to place bets whenever any discount whatsoever occurs. and they know where they won't move the stocks with their aggressive buying. think back to bank of america, think wells fargo. oh, that's selling? they've got to hone every share they have. they can't afford to sell anything, they'll lose their exposure. they have too much buying to do here's the bottom line -- we are in self-fulfilling mode now. that's why i keep saying you you've got to show respect and pay homage to this unbelievable market. i think we're at a point where
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the hedge funds must come and buy every dip. up double digits, there's no hiding now. we've entered get long or be wrong territory and the market has become just like this show. the money managers, they can't afford to miss it! carrie in florida, cary! >> caller: boo-yah! >> what's up there, chief? >> caller: as a home gamer from the school of a street addict, i've been buying pnh as the price drops. it's on a run-up and i wondered what percentage of the run-up is due to the reality and what percentage is due to the dip in the capture and how do you like it going forward? >> i'm liking the whole thing, dividend capture, trying to get the battle for tnh, but at the $92 level, i switched to the potash, why? because i listened to the potash conference call, which was a thing of beauty. it was magisterial! it was incredible!
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it was harry potter-like. it made you buy. john in nebraska, john. >> caller: boo-yah, jim! >> boo-yah, corn husker. what's shaking? >> caller: i saw amerigas last night. they're sitting at a 9% yield. i was wondering, is that dividend safe and is the price of propane going to be going up with the lower dollar? >> i believe it is safe, but we have learned our lesson oh, king of prussia, that's up. we killed them whenever -- all right, anyway, from philadelphia. amerigas, i want to invite the ceo on, because it could be, rather than just pronouncing dividend safe, it could be like michael lynn. you remember that one? line? michael line at $15.16. we doubted the dividend. he came in, we said buy, buy, buy. where it is now $21.22. amerigas, come to "mad money" with jim cramer. sam in georgia. sam! >> caller: boo-yah, jim.
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>> sam, you came to play today. what's on your mind? >> caller: okay, my question is about setting stock stop losses. i've been in the market for a long time and have never heard the rule. i have never understood if there's a particular rule to this. i use -- i have been using a 5% sales stop, such as i buy a $10 stock and set the sale stop at $9.50. >> all right, all right. sam, that's not been my style. that is the way of investors business daily, an organization and a newspaper i like very much, but let's understand each other -- i always want to keep the control of the orders in my hands. let's take today, okay? we dropped very severely at the opening. you might have been stomped out and then you missed the up side. never give control to others! let's always, if we're going to trade, be hands on. if we're not going to trade, then we're fine. don't put stop loss orders at. sorry, sam. i liked you, though. where in the world are you where we can't beat the averages on the sidelines.
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not up 11%. the market has been calm, just like this show. yeah. they can't afford to miss it. stay with cramer! coming up, can a pipeline play from the great white north pump some green in your portfolio? cramer crosses the border into canada to find you the next member of his foreign legion. plus, cramer breaks down a bank stock on the rebound. will the charts be strong enough to lift this financial's fundamentals? find out on "off the charts." and later, lightning strikes! cramer goes electric, taking all your calls in a spine-chilling, overcharged lightning round. all coming up on "mad money." closeout is here;
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deaf, hard of hearing and peoplecall or click today.ities ive. ♪ canada, oh, canada
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>> oh, hey, hey, there is a palpable sense among a lot of investors that the united states simply isn't safe anymore, that we're on, indeed, the wrong track or off the tracks entirely. with a legislative agenda that could put a stake through the heart of big and small businesses alike. a currency that's only getting weaker, jobs flinging overseas, as companies fire people here to cut costs, while they do more business overseas in places like, yes, indeed, china, to boost profits. some of this stuff i hear about america, about how in trouble it is, i kind of find it hysterical. we've not going to relive the buy more republic experience. i don't think we're japan during the lost decade and i don't think president obama is antibusiness, per se. but i recognize with our budget
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deficit, our low to nonexisting growth and a potentially i higher tax regime on the way, that the united states is no longer in control of its destiny like it once was. and i do think that the speaker of the house, nancy pelosi, is hugely antibusiness, and obama would be wise to distance himself from her. sadly, he has, however, showed no interest in doing so, which is why we started up my own foreign legion of dividend stocks. all week, i'll be going around the world recommending new members, companies from abroad with high dividends that offer insurance against, indeed, yes, what some would consider to be the rot of the united states. and it should go higher as the dollar weakens, because the stocks trade on foreign exchanges and foreign currencies. i'm recommending the adrs tonight, the american depository receipts. those are our foreign stocks trade on u.s. exchange traded. i'm not going to get you to buy some swiss franc or something. and as the greenback declines, these adrs will go higher
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because the exchange rate. so, if you believe the dollar is only going to get even weaker thanks to our efforts to debase the currency with mass stimulus, then my foreign legion is just what you're looking for, and you're going to have to get your own passport for the united states of cramerica. i will go anywhere to find you a bull market. yesterday we went down to brazil. better than a sharp flag of the eye. the land of plastic surgery, giselle and carnivale to cpl and cig, two utilities. put them right in the foreign legion. today wasn't well, as exciting. we're heading to canada. the great white north. the land of celine dion, not bad in concert, and jim carrey. personally, i prefer giselle and plastic surgery over dog sleds, canadian bacon and the police, one of few movies to have both robert preston and preston foster, which means nothing to you, because you're under 60, unlike me.
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so we don't go to canada for the culture. we do it to make moolah! luneies! what canadian high-yielder has joined the right to join the mad money foreign legion tonight? we have slightly higher standards than the french version and would never fall prey to a small place. the stock i like is trans-canada! trp for all you home-gamers. it's the largest natural gas pipeline company in all of north america with 38,000 miles of stuff like this, okay? in addition to being the largest private power company in canada and the northeast united states -- 7,700 megawatts of capacity -- why pipes? why power? remember last week when i talked to richard kinder, the genius behind pipeline operator kinder morgan energy partners, the stock i've recommended so endlessly that when i walk down the street, people say k&p, not jimmy. we didn't get into business because i wanted his views on
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climate change, but i think they're terrific for the same reason they're a buy. pipelines are good investments. they're toll roads, toll roads for canada and america's energy needs, and a company like this makes money on the flow of energy, be it natural gas or crude. and it isn't hostage by the price of the commodity. that means predictable cash flows that allow pipeline operators to pay out, you got it, huge dividends. transcanada is expected to pay out $1.47 a share in dividends. at the current price, it means it has a juicy 5% yield, although you cannot find that even on the online version of "word up" magazine. given that transcanada should generate $4.12 of cash flow per share, that dividend looks pretty well covered. let's blow in the billions in cash on the balance sheet and i would say it's marathonman-like, with of course, clove applied to the drilled tooth.
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transcanada also has got some growth to it. the company has a big project coming online next year, the keystone pipeline, a crude oil pipeline that will carry about 1.1 million barrels a day. i've been waiting for this thing to open for forever, from alberta to the texas gulf coast. man that was a mammoth works progress game. already about 82% of its capacity has been contracted out for an average of 18 years. that should give you some idea of how consistent this business is and the kinds of earnings visibility it has. that, of course, means how much management can be able to tell you it's going to make in the future. the further out, the better. now, the earnings before the bad stuff, you know, that interest in the taxes and the depreciation and the amortization, expected to increase ten-fold from 2010 to 2013, so i think the dividend is going higher. could it be higher and higher a la jackie wilson? anything's possible. on top of the pipeline, they have a power generation
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business, 30% of the earnings before interest, taxes, depreciation and amortization. it's pretty well hedged, 70% of the output sold for next year. this company is smart. i like the company for the management, for the pipeline biz, but there's no doubt that the power generation side ads some extra stability. especially when the economy is getting better worldwide. here's the bottom line, if you think the united states is headed off the rails, i want you to take a trip to the great white north and join cramer's foreign legion with transcanada, our favorite high-yielding canadian pipeline play with enormous upside and a super-de-duperdy dividend. join cramer's foreign legion. and just like edith sang for the real foreign legion, you'll be able to say i regret nothing. that's right. special bi-lingual bottom line for one of my favorite canadian companies. after the break, i'll try to make you even more money.
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coming up, cramer breaks down a bank stock on the rebound. will it be strong enough to lift this financial's fundamentals? find out on "off the charts." plus, jim goes high-voltage in an electrifying fast-fire lightning round. and later, why's jim all fired up about the s.e.c.'s latest action against bank of america? stay tuned for cramer's"outrage of the day" all coming up on "mad money." now you can stay connected to cramer wherever you go. download full episodes on itunes, grab a widget to your desktop, get text alerts to your phone, and now with twitter updates, you can get "mad money" any time, anywhere. undefeated professional boxer floyd "money" mayweather
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it's an opportunity today. it's a lexus forever. special lease offers now available on the 2009 is 250. we've heard a lot lately about the problems and travails of ken lewis, ceo of bank of america. the whole negative pan plea, overreaching for merrill lynch after overpaying for countrywide, getting fined for statements related to that merrill lynch buy, getting pushed around by the feds when he tried to back out from his ridiculously high bid for
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merrill. heck, it's true, ken lewis waited a few weeks in both cases, he might have been able to buy countrywide and merrill for nothing. and you know what? we don't care. we don't care, because we've got one of those opportunities that i live for when i ran money at my hedge fund. the moment when both charts and the fundamentals -- both charts and fundamentals are screaming -- ♪ hallelujah >> buy, buy, buy. >> and the spread quadrupling this year, i think bank of america could rally another 50%. >> all aboard! >> and maybe even double, thanks to a coalition of the ruling buyers who can't stay away from the stock. that's why i've made bank of america one of my largest positions in my charitable trust portfolio. so, first, what are the charts saying about the future? what are the technicians who
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interpret these pick toe -- picketo graphs saying about where bank of america's going? tonight, we go off the charts with dan fitzpatrick, our go-to technician and my colleague at, where i'm chairman, and you've probably seen him many times on "fast money." fitzpatrick thinks bank of america could be heading to $25 based on these technicals. why does he think that bank of america has so much room to run? the thesis is based on the idea of something called volatility expansion. basically, what that means is that after a period of low volatility, okay, where buyers and sellers are essentially resting, as soon as there's an increase in the volatility, the bulls and bears get off the sideline, essentially low volatility ultimately leads to explosive action after a significant amount of turnover. so, let's take a look from may through july bank of america was churning within a defined trading level, see? i mean, it's kind of going like this.
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that's called churn, okay? that's churning. for most of june and july, the stock pretty much fluctuated, very small, $12, $13. every time it would go above $13, they would flood the market with supply. fitz thinks the sellers at $13 were people who picked it up at $10. there was a gigantic equity offering, stress test related, and he figures people who bought it at $10 are trying to lighten up whenever it goes to $13. that's locking in a nice profit at 30%. at the same time, there was a ton of demand for bank of america stock at about $12, and that narrowed trading range set up what fitzpatrick considers to be a classic low volatility trigger. you can see where he's going with this, okay? once all the supply at $13 got soaked up by the bulls at the end of last week, the stock started breaking out as depicted by this line. that's the breakout. now it's already at $15.65. the reason he thinks it can go
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higher is because the current move is starting from the average trading price over several months, right? well, been doing that for several months. the investors aren't saying to themselves, man, i ran too much, i missed the move. they're saying look at that bank of america's breakout! they're just focused right here on this. i want some of that. the last time bank of america broke out to the upside, a run that lasted from march 6th to may 7th, made $11.61. that's over a $3 base. it'd broken out again. so, fitz says it can have a similar size run, which is why he slapped a $25 minimum price target on this baby. okay, now, why do we like it on the fundamentals? and i'm a fundamentalist. first, you've heard of banks that are too big to fail? bank of america was one of them back in march. now bank of america is too big not to buy if you're a portfolio manager. if you think a recovery is coming, then this stock is the play. you have to think of it as like a gigantic cyclical stock because of how much money you
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could make if growth returns to the u.s. economy, and it is. bank of america's the dominant retail banking player in this country. 12.2% of all u.s. deposits -- that's amazing. the bank's 82% of the u.s. population. i think the upside potential here is massive. it's building up reserves. it's not reckless, even though what you hear all day is that it is. reserve ratio at 3.61% at the end of the quarter, average bank is 3.1%. it's repossessed housing portfolio that's other real estate owned, also known, of course, as -- oh, god, someone licked the middle part off. that's all, man, that's disappointing. all the foreclosed properties that this bank now owns could soon flip from being a negative to being a colossal positive, thanks to the bottom in housing that's causing foreclosed properties to sell like hot cakes. i need you to stop, listen, by the way, to the nay sayers on foreclosures.
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they were on all day today. they're on around the clock, on every station, in every paper. when you get pending home sales as strong as this morning, and they were real strong -- hear me out! when i said hear me out, you want to buy shares in a company that owns homes! and like it or not, bac's got to be one of the biggest homeowners in the country with way more than any homebuilder might have in its inventory. and you have to remember that bank of america's stock is coming back from levels where it seemed like the entire financial sector would be nationalized. remember those professors who wanted to nationalize everything? it was traded like it had no future, but once the systemic risk was taken off the table, the stock bounced back. don't look at bank of america like a stock that's run from third to -- don't look at that. it never should have been this low to begin with. now with signs of real recovery, especially in the stabilization with real estate, up side, it's huge. i do love the binary aspect of this. right now ken lewis is despised by wall street and the government.
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give that this stock's flying with lewis at the helm, can you imagine where it could go without him? this is a heads you win, tails the seller loses. and the franchise is far from wrecked by lewis or it would never have attracted sally, who ran wealth management yesterday. look, i know the street hates him because he's a gambler, a cowboy, a maverick. but he may get the last laugh because i can't imagine the feds would ever have allowed a bank to become this big and this powerful if it didn't need help to stabilize the financial sector. did lewis overpay? no kidding. but if the economy comes back, bank of america will own the mortgage market in the country. the bottom line is the financials and technical, the fundamentals and fitz's work. they say bank of america is still a great buy. forget ken lewis. the company has a deep bench. they could fire him or not fire him. i think the thesis behind bank of america is much bigger than the problems you hear about all day of its ceo. the thesis is a turn in the economy, and i think perhaps the
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single best vehicle to play that turn right now is the bank of america. ricky in new york! ricky? >> caller: hey, jim! >> hey, rick. >> caller: hey, i want to give you a big boogie down bronx boo-yah! >> i'll take that. i'll take a bomber boo-yah, how about that? >> caller: all right, all right. my question is, right now i own visa. it's more of a long-term play for me, and i'm kind of worried that because since last year, it's taken a while to break past that $70 mark, it may be a while before it gets to that point. my question is, should i stick with the long-term play or go ahead and sell it and -- >> ricky, listen to me and listen good. you should be more worried about the yankees' prospects versus boston than you should be about visa. here's why, all right? visa was a stock that reported a great quarter last week. so did mastercard. the bears pushed it down, why? because they made a stand. it was a puric stand, my friend.
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on stop trading with erin burnett, i mentioned mastercard and visa were being held down. visa little profit-taking now, recharging, going above $70. debit cards are king. that's what people use. even my daughter uses a debit card, like when she goes to dsw and stuff. all right, let's go to danton. that's discount shoes warehouse. let's go to dan in new jersey. dan! >> jimbo. >> hey, shaking, partner! >> caller: i'm baffled a bloomingdale boo-yah to you! >> whoa. let me give you a mountain lakes boo-yah. good lacrosse school. >> caller: what exit is that? >> that exit is right near 23. is that near butler? they have just a magnificent program there. all right, go ahead. >> caller: i'm really confused there. you've got to help me out here. hudson city. for the longest time, they're saying this thing's going to be 17 cents, 17 -- >> 17's the narrow. >> caller: yeah. now they dropped it down to $15. target price.
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i know they're loaning to fica-scored people with the super fica, and i don't understand what's going on. >> i'll tell you, dan, this is one of those things -- this is like a front seat-back seat thing. we like the most reckless banks in the world now. we like fifth third, huntington banc, zion's bank, we like, well, bank of america. we want the ones that can really have what's known as the leverage, that could really flip. hudson citibank, run by ron hermance, a conservative bank, is not what we like. it's the equivalent of proctor and gamble or coca-cola, it's consistent. we want inconsistent and explosive upward, not consistent and sleeping, which is how people feel about hudson city. i'd say stay the course. let's go to art in ohio. art? >> caller: jim, boo-yah from chillicothe, ohio. >> man, you know, that's how you pronounce it! i never knew how to pronounce it. well, i'm learning something tonight, too. what's on your mind? >> caller: jim, my stock is sallie mae, symbol slm.
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could government regulation or private lending institutions be killing this sector? >> well, sallie mae went from recommending around $6, went up to $10. i should have immediately told people to take profits. now it's meandering. the quarter was not that great. i think this is my speculative stock of the year. i think it can wind itself slowly but surely step by step and slowly sallie mae goes to $10, but there i think we'll have to say -- >> sell, sell, sell. >> -- because we've made too much money and there's nothing bad about taking a profit. the charts and the fundamentalists agree! ken lewis, it doesn't matter who runs bank of america. we have a 50% move ahead say the fundies, and the charts are calling for a double. i say stay with cramer. coming up, the madness goes nationwide. >> buffalo boo-yah! >> boo-yah from south texas. >> as jim takes your calls from across cramerica. >> boo-yah to you from st. louis.
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>> big 110-degree boo-yah from phoenix, arizona. >> boo-yah from seattle. >> in an all new quick fire "lightning round." and later, why is jim all fired up about the s.e.c.'s latest action against bank of america? stay tuned for cramer's "outrage of the day." all coming up on "mad money."
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holy cow, it is time! it is time for the "lightning round." rpd fire calls one after the other. you say the name of the stock, i tell you whether to buy buy buy or sell sell sell. just to be clear, i don't know the stock questions or the
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callers ahead of time. on the fly, we play until you hear this sound, and then the lightning round is over. are you ready, skee-daddy? it is time for the "lightning round" on cramer's "mad money." let's start with bowden in new jersey. >> caller: hi, jim. huge boo-yah. oh, i'm screwing up. >> it's okay. >> caller: research in motion, rimm, what do you think? >> from, where i am chairman, i said that i felt after that blown quarter that this stock would not recover, and that this stock is now pantsing me. it's unbelievable. i said to take province in r.i.m. and palm and reinvest in apple. and they're all going up, but research in motion is going without me and i feel ripped, i feel naked without my r.i.m. i'm waiting until it comes in and then i'm going to pull the trig yes, but right now, consider me unqualified to talk about rimm because i did not predict this rally. the tsunami that is the mobile internet is taking everything up with it, including the ones
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that didn't report good quarters. steve in florida. steve! >> caller: hey, yim. >> steverino, what's up? >> caller: boo-yah, jim! >> wow, you came to play. what's on your mind? >> caller: i bought conocophillips back in march. the financial position, some at $34 range, some at $38. to me, it looks like it's formed a bottom and it's forming a double bottom right now. it looks like if it goes through $50, it's going. what do you think? >> i will not disagree with that characterization of c.o.p. now, i did not like that quarter. i love the fact that you have a 36 basis. you get a 4% yield. the quarter was a disappointment because they're one of the larger refiners. the refining was a bit disappointing. they're a huge natural gas play. having bought burlington resources not long ago. and the natural gas price has been very disappointing. the bottom line is conoco was great. jim mobile, welcome to the show.
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i really feel strongly that this is an okay oil play, but that they're all going higher. rising tide lifting every single boat. >> house of pleasure. >> you're fine with c.o.p. pete in georgia. pete! >> caller: hey, jim, boo-yah! >> boo-yah. >> caller: i just came back from china and i found out what boo-yah means. when you get a bunch of vendors chasing after you, you yell boo-yah. >> i think it's a curse word in china. >> caller: it means we don't want anyway. >> what's up? >> caller: i found out when i was in china that kimberly-clark had a partner over there. i found out they can't keep up with the demand. i'm wondering if kimberly-clark is still a buy or if -- >> it is a buy. it yields 4%. it's an accidental high yielder, reminds me of clorox, which has come down, but understand, these are companies that do not have the great leverage to an economic recovery, so you may have to sit at this 4% level.
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put a half petition order and buy the rest. i think it's a good brand name, but it ain't going anywhere. john in pennsylvania. >> caller: boo-yah, from london, pennsylvania. >> good to have you. >> caller: jim, when you talked about sandisk about three weeks ago, i bought it and i've got about a 5% profit in it. is it worthwhile keeping it? >> i want you to hold it. here's what happens. the quarter is very interesting. this company used to be a hyper rooney mcfadden country, came from west virginia. now, here's the deal. when they came out, they decided to go away from their usual hype philosophy. of course, they'll say they never had that philosophy. i say first do no harm. and they put a damper on expectations, which causes the stock to go from $19 back to $16, which is a classic opportunity. sandisk at $18 i think goes higher. i hear all about flash memory, and all i can tell you is that the internet mobile tsunami will wipe out any glut of flash memory. i think that sandisk is every
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bit as good as western digital. the hard drive. james in ohio! james? >> caller: hey, how are you doing, jim? >> not bad, jim james, how about you? >> not bad, jim. i'd like to say a big, bad boo-yah from springville, ohio, home of the panthers! >> holy cow. i didn't even know about that. that's fantastic. i was so convinced they were in north carolina. now i've got it straightened out now in my own mind. >> caller: yes, sir. hey, jim, i'd like to know, what do you think about ncr stock? >> i'm not a fan, nor am i a fan about the fact they're moving from ohio and you got to know they're a huge employer. here's the deal, retail's turning, so it could be a rising tide again, so i'm not going to say buy -- >> don't buy, don't buy. >> i'm not going to say sell, but if retail's hurting, i'd rather own costco. let's go to jeff in indiana. jeff? >> caller: hey, jim, from terre haute, indiana, a ba-ba boo-yah! >> oh, indiana.
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we were in indiana, went to iu. it was one of the best times ever. what's on your mind? >> caller: eln. >> it's one of my least favorite drug companies, maybe the least entirely. i would rather see you in mylan, which i really can't stand. i would prefer you, if you're going to own a pharma, i think you should own, frankly, bristol-myers, which doesn't get any respect, yields 6% and people keep treating jim cornelius as if he were rodney dangerfield. he doesn't get any respect. i think he's going to blow away the numbers. i think the dividend is safe. they don't like the cash. i like the acquisition. stick with cramer!
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fair, straight-forward pricing. that's what td ameritrade stands for. think about it. why pay investing fees you shouldn't have to? or account fees that aren't clear? like inactivity fees? or maintenance fees? it's not right. and you know it. and the thing is, the other investment firms know it. but they do it anyway. and that's just not fair or straight-forward. td ameritrade. independence is the spirit that drives america's most successful investors. you know, the beer you choose says a lot about you. you want friendly, but not pretentious... classic, never trendy. you want a real american beauty. are you talking about the budweiser? or... me? yes. ♪
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i got an outrain of the day and a eureka moment rolled into one. back in november, bank of america's management, according to the s.e.c., allegedly misleads its shareholders about its pending acquisition of merrill lynch, saying that merrill agreed not to pay any bonuses before closing the deal without permission from bank of america. while omitting the crucial fact that bank of america had already agreed that they could pay up to $5.8 billion in bonuses. so in response, the s.e.c. sues bank of america and then the company pays out $33 million to the government to settle the s.e.c.'s claims, without admitting or denying anything. wait a minute. who got hurt here? bank of america shareholders. who's paying for the settlement with the s.e.c.? bank of america shareholders. what the heck? the shareholders were the ones that agreed to buy merrill lynch on management's say-so and they
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got hurt. so now the s.e.c. has decided those same shareholders should lose more money, this time to the government. i think it's backwards. ken lewis, bank of america's ceo, hurt his shareholders. why do i say ken lewis. ceo, buck stops with him. why does the money go to the government instead of the shareholders. and worse, why is the cash coming out of the shareholder's pockets? shouldn't it come out of ken lewis' products? what's the point in doing it this way? why should ken lewis care about the size of the penalty or even breaking the rules when he's not the one who pays for snit why should any ceo care about misleading shareholders when the s.e.c. makes them pay any way rather than the executives? to me it's stupid. government doesn't deserve this money but it's getting it. in the same role, ken lewis will get fined, money will be distributed to shareholders. instead, we got this messed up fine from the s.e.c., does nothing to make things right or
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do anything for good behavior. that's more like the lottery than a regulatory regime. so if the shareholders hadn't benefitted from an infraction, the fine should be levied against management. the way we do things now, the shareholders who have gotten hurt get dinged again and the executives, who actually may have broken the rules, get away scot-free. it's all backwards and wrong. until the exec gets punished, not the shareholders, i see no reason why this won't happen again and again and again and again. you get the picture. so, what's the problem?
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these are hot. we're shipping 'em everywhere. but we can't predict our shipping costs. dallas. detroit. different rates. well with us, it's the same flat rate. same flat rate. boston. boise? same flat rate. alabama. alaska? with priority mail flat rate boxes from the postal service. if it fits, it ships anywhere in the country for a low flat rate. dude's good. dude's real good. dudes. priority mail flat rate boxes only from the postal service.
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after the close, our favorite non-wall street
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analyst, danny myer, who wrote "setting the table" gave us another victory, whole foods blow out quarter. he told us they got the hospitality quotient. there's always a bull market somewhere and i promise to find it for you. i'm jim cramer. what a market. see you tomorrow. at 155 miles per hour, andy roddick
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has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". i felt amazingly boxed in. (announcer) joe uses the contour meter from bayer. (joe) my meter absolutely adapts to me and my lifestyle. i'm joe james, and being outside of the box is my simple win. (announcer) now available in five vibrant colors.
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car insurance company in the nation. but, it's not like we're kicking back, now, havin' a cuppa tea. gecko vo: takes lots of sweat to become that big. gecko vo: 'course, geckos don't literally sweat... it's just not our thing... gecko vo: ...but i do work hard, mind you. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko." come on people.
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it is a market that won't go down. welcome to "fast money," live at the nasdaq market site. i'm melissa lee and these are your "fast money" traders. the s&p 500 holds the 1,000 level, inching higher today. these guys will give you the best way to play. and later, rick santelli, aka, the big sur, reveals what may ruin this rally, plus, behind the high-frequency trade. first, the "word to the street." let's talk about that 1,000 level. it is a good sign, i would imagine that we held onto that level. >> huge level. you have to look at this in a couple different ways. the hedge funds tried to push and break this market's back and couldn't do it. mutual funds forced a buyout on the that level. >> this morning i came in, hedge funds kept telling me, i think the market's going to crack today. i didn't think so, mutuals didn't think so. it didn't. >> we were talking about this on the halftime report, pete, that you're seeing this, and this is a good sign that we've been able to hold onto this. seeing good participation in this rally. >> absolutely. the options market, 14 1/2
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million contracts sold. the volume is there. everyone talks about the volume being low. no one wanted to believe the rally. take a look at the options. i think you're seeing more and more folks using the options as their vehicle to try to participate in this market rally. i'll tell you what, the other thing that really strikes me is people all were looking. yesterday, what really drove the market, a lot of commodity stocks really pushing us to the up side. today, really light pullback. we didn't get that dramatic pullback that everybody was waiting for, and i think that's why we saw the market not only stop, but then move positively. >> and i think it's important to understand, if you're an asset allocator right now, figure out which way you need to be positioned. you're waiting for an impending correction. here comes unemployment on friday. what if unemployment lines up just like all the other economic reports have in the last four to six weeks, where they surprise to the up side, and you're waiting for this correction? i'll tell you what, if you get a surprise in unemployment on friday, this market is going to shoot higher and you missed the trade. >> at the same time, joe, last week you said you were moving to the sidelines ahead of that unemployment ror


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